Marketing Final Exam

Marketing Final Exam

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Unformatted text preview: e curve, which means costs decline at a predictable rate as experience with a product increases. PTS: 1 REF: 20 Thinking KEY: CB&E Model Product OBJ: 02-5 TOP: AACSB Reflective MSC: BLOOMS Analysis 11. Niche competitive advantages are quite common. ANS: T The text lists several examples of how companies have created niche competitive advantages. PTS: 1 REF: 21 Thinking KEY: CB&E Model Strategy OBJ: 02-5 TOP: AACSB Reflective MSC: BLOOMS Comprehension 12. Berkshire Hathaway Inc., a large property insurance company, owns a large chain of jewelry stores and has recently purchased Russell Corporation, a manufacturer of sporting goods. Berkshire Hathaway uses a market penetration strategy. ANS: F Berkshire Hathaway uses a diversification strategy. PTS: 1 REF: 22 Thinking KEY: CB&E Model Strategy OBJ: 02-6 TOP: AACSB Reflective MSC: BLOOMS Application 13. When the Internet auction company eBay opened a version of the company called eBay France for the French market, it was an example of market penetration. ANS: F Market penetration is the strategy of selling more to the existing customers. This is an example of a market development strategy, which is attracting new customers to existing products. PTS: 1 REF: 22 Thinking KEY: CB&E Model Strategy OBJ: 02-6 TOP: AACSB Reflective MSC: BLOOMS Application 14. A market penetration strategy entails the creation of new products for current customers. ANS: F This is an example of product development strategy. A market penetration strategy in one that tries to increase market share among existing customers. PTS: 1 REF: 22 Thinking KEY: CB&E Model Strategy OBJ: 02-6 TOP: AACSB Reflective MSC: BLOOMS Knowledge 15. The Home Depot’s purchase of Hughes Supply Company allows it to better meet the needs of its current business customers. This is an example of product development. ANS: T PTS: 1 TOP: AACSB Reflective Thinking MSC: BLOOMS Application REF: 23 OBJ: 02-6 KEY: CB&E Model Strategy 16. When a florist shop begins to sell burial caskets to its customers, it is engaged in product development. ANS: T Product development is the offering of new products to current markets. PTS: 1 REF: 23 Thinking KEY: CB&E Model Strategy OBJ: 02-6 TOP: AACSB Reflective MSC: BLOOMS Application 17. A diversification strategy entails increasing sales by introducing new products into new markets. ANS: T PTS: 1 TOP: AACSB Reflective Thinking MSC: BLOOMS Knowledge REF: 23 OBJ: 02-6 KEY: CB&E Model Strategy 18. The portfolio matrix is a tool for allocating resources among products or strategic business units on the basis of relative market share and degree of innovation. ANS: F The portfolio matrix is based on relative market share and market growth rate. PTS: 1 REF: 23 Thinking KEY: CB&E Model Strategy OBJ: 02-6 TOP: AACSB Reflective MSC: BLOOMS Knowledge 19. Marketing strategy involves the activities of selecting and describing one or more target markets and developing and maintaining a marketing mix th...
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This document was uploaded on 09/29/2013.

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